SPIKED COLLARS (Dynamic Hedging)
Archive : SPIKED COLLARS (Dynamic Hedging)
Most people originally learn options so they can hedge their stocks or portfolio against a crash. A collar will certainly protect your investment. But then what? Um, um, um… Written 11 years ago, Scott’s original book on collars touched on this very topic, but never gave examples nor criteria.
Finally it’s coming!
Since July 2016, Scott has been keeping a diary of a stock being hedged dynamically. When the stock runs higher, profits are locked in. When the stock falls, the put hedges are closed and adjusted. Using the money from the closing of the puts, put spreads, etc., more shares are purchased without putting more money into the trade.
This textbook is written like a journal with separate lessons and multiple techniques for a trader to choose a hedge that fits his/her style, risk tolerances, time spent to watch the trade, etc. This book is expected to set a new industry standard on how to manage a collar while acquiring more shares.
The book will cover the whole gamut of using collars for protection, from basic to advanced. There won’t be a need to pick up another reference to fully learn the strategy. A definite MUST for any serious stockowner.